Multinational consumer goods giant Unilever is negotiating the terms of business with Kenyan leading retailer Nakumatt after distribution of Unilever products such as Blue Band margarine, Oxo washing powder or Rexona, stopped earlier this year. The halt in distribution, which was due to payment failures and was not exclusive to Unilever, has led to notoriously empty shelves at Nakumatt supermarkets across its network of outlets in East Africa. According to Unilever representatives – who did not disclose the amount in debt owed by Nakumatt -, distribution should resume as soon as both parts reach an agreement, which is said to happen soon.

Nakumatt has been in a dire financial situation after an aggressive expansion strategy failed to deliver profit growth, mainly in Kenya and Uganda. For the past months, the family-owned retailer has been looking for a private investor that could provide a liquidity injection to face cash-flow problems. Although a buyer was announced previously this year, the deal has seemingly failed to succeed.